The purchase of real estate when paying for it with mortgage loan funds is associated with the collection of a fairly large number of documents, one of which is for mortgage. Is it obligatory This procedure and how it is carried out will be discussed in the article.

The need for and legislative regulation

The requirement to carry out appraisal activities in relation to real estate, the acquisition of which is planned on a mortgage, comes from. The law stipulates that an agreement for the provision of borrowed funds by a bank must necessarily contain information about the object for which they are used to purchase.

It is important to understand that the article describes the most basic situations and does not take into account a number of technical issues. To solve your particular problem, get legal advice on housing issues by calling the hotlines:

Question, Why do you need an apartment appraisal? with a mortgage, there is also a second answer. The bank itself is interested in it. The purchased housing remains with the banking organization under collateral until the buyer has fully settled the loan with the bank. If a citizen does not fulfill his obligations and does not repay the amount borrowed from the bank, then the credit institution can sell the property to pay off its own expenses. If the purchase price was inflated for some reason, the bank may remain at a loss.

So, assessment activities boil down to:

• independent real estate valuation;
• identifying a reasonable price for the apartment on the basis of which the loan capital will be issued;
• preventing fraudulent schemes in order to obtain a larger amount from the bank using less valuable housing as collateral.

What does it affect? this event:

• on the bank’s decision to issue money for the purchase of specific real estate;
• loan amount.

Assessment Methodology

Assessment procedure

The more important question is: who does the real estate appraisal? These are specialized companies that have membership in an SRO. Each bank has its own list of approved appraisers whose reports it trusts. The buyer has the right to either choose a company from this list or find a third-party organization. In the second case, it is recommended to obtain approval from the bank of the selected candidate before conducting the assessment.

What you need to pay attention to when choosing an appraiser:

• the company is a member of the SRO (self-regulatory organization). This can be checked using specialized databases on the Internet;
• There is a civil liability insurance policy, the amount of which is not less than 300 thousand rubles.

Order a real estate appraisal must buyer. The procedure is as follows:

1. Finding an appraiser and concluding an agreement with him. The contract specifies the range of services provided, terms and price.
   

   Who pays for the appraisal of an apartment with a mortgage? This mission lies with the buyer. The cost of appraising an apartment for a mortgage varies within 3-4 thousand rubles.

2. Provide the mortgage appraiser with:
   • document on ownership of the apartment (purchase and sale, DDU);
   • cadastral plan of the premises (taken from the BTI);
   • explication of the apartment;
   • passport of the customer of the assessment.
3. Property inspection. Be sure to provide access to the apartment for a specialist and conditions for photography (daytime, good lighting).
4. Preparation of documentation and its transfer to the customer or directly to the bank.

A real estate appraisal appears in the form of a document that is quite impressive in volume (up to 30 pages) with photographs, analytical data and conclusions regarding the liquid value of the property in question. The report must be confirmed by the necessary seals and signatures and contain information about the specialist who carried out the work.

The period for preparing a report after an inspection is usually no more than 2 days. In extreme cases, it can be extended to 5. The terms of work are specified in the contract with the company and it is important to pay attention to this even at the moment of signing the document.

What to do if the completed report does not satisfy the customer? The work of appraisal companies is regulated, according to which the appraiser is financially and criminally responsible for errors made during the calculation.

Dispute can be made:

1. By personal agreement of the parties and repeated research.
2. Through the court.

Valuation of an apartment during shared construction

Valuation of real estate, which at the time of acquisition is under construction, has a number of certain nuances:

• in essence, it is not the apartment that is acquired, but the right to it;
• the agreement for equity participation in construction must be registered with the Unified State Register (in accordance with);
• During the assessment, the project's delivery date is predicted, and risks in connection with possible violations of the deadline are calculated. This affects the cost, the spread of which can reach up to 40%.

In such a case, an inspection of the apartment, of course, is not carried out. All information about it is obtained from equity participation agreements. Next, information about similar objects, but in completed houses and nearby, is taken into account.

Violations during assessment

Which errors and violations can be committed during the assessment work:

1. Formal and arithmetic. As a rule, they are quickly detected and eliminated without problems.
2. The appraiser may inflate the appraised value of the apartment due to incorrectly selected analytical data and sampling. This causes problems for the bank in a situation where the loan recipient has not paid off the debt and the apartment is sold to cover losses. A significant difference between the calculated and actual prices is a reason to go to court.
3. Undervaluation of an object disadvantageous for the buyer. The bank will issue a smaller amount and the buyer will have to look for third-party funds to pay the seller.

Example for appraising an apartment

The Antonov family received approval for a mortgage loan in the amount of no more than 2.5 million rubles an initial contribution in the form of maternity capital. Mikhail Antonov finds a suitable purchase option and orders its appraisal from one of the companies listed in the bank’s list.

The seller is asking for a three-room apartment with an area of ​​84 sq. m. 2.4 million rubles. Based on the assessment, its market value is estimated at 2.1 million, and its liquid value at 2 million. The latter is due to the fact that the apartment is located in a fairly large area requiring major repairs.

In words, the appraiser informs Mikhail that the price of the property is clearly too high and connects this with the recent renovation of the apartment and the replacement of all windows with new plastic ones.

Based on the assessment, the bank decides to approve the amount of only 2 million rubles. The family is unable to find additional money and refuses this option purchases.

Conclusion

1. Appraisal activities are a vital part of mortgage lending and serve as the basis for deciding whether to approve the purchase and the final loan amount;
2. Several are used assessment methods, which analyze the market, liquid value of housing and predict their growth or decline at the time of loan repayment;
3. The assessment is carried out by specialized companies;
4. Evaluation actions may be subject to objects under construction;
5. Row violations in the process The appraisal actions may have a negative impact on the buyer or the bank, which gives them the right to sue the appraiser.

The most popular questions and answers to them regarding apartment valuation

Question: We received approval from the bank for a mortgage. Made an assessment your favorite property. The bank, based on the assessment, refused to provide money for this purchase. We recently received approval for a mortgage loan from another bank. The apartment is still for sale. 4 months have passed since the assessment. How long is it valid? and can we provide documents to another bank?

Answer: Evaluation validity period amounts to six months. We recommend finding out whether the selected bank cooperates with this company or whether it agrees to accept an assessment report from this organization.

Content

Buying residential property with a loan has become easier. Banks offer various lending programs with the condition that the purchased square meters will be the subject of collateral. An apartment appraisal for a mortgage is a prerequisite, and it must be ordered from an independent appraiser or company before going to the bank. The resulting report will allow you to determine the loan amount, because if necessary, the property can be sold at its real value and the resulting debt can be repaid.

Why do you need a real estate appraisal for a mortgage?

An appraisal of an apartment when purchasing with a mortgage is necessary for both parties to the loan agreement. It is not only a guideline for issuing borrowed funds, but also a certain insurance in case of force majeure. The fact is that the price set by the seller may be inflated and not correspond to the real estate market conditions. If the estimated value turns out to be lower than the proposed one, and it is not possible to agree on a discount with the owner, the borrower can pay it extra from his own funds or find a new property to purchase.

Bank risks in mortgage lending

The lender is primarily interested in appraising the apartment. An independent analysis is carried out to prevent fraud on the part of the borrower, because he can, for selfish purposes, request more money and spend it for other purposes. By lending a large sum to a borrower to purchase an apartment, the bank takes a risk, since there is always a risk of non-repayment of the loan. To minimize the danger, firstly, the loan amount is never the full amount of the purchase price, but fluctuates between 60–70%. Secondly, the purchased real estate is necessarily the subject of collateral.

Protecting the interests of the borrower

Since financial institutions try to underestimate the amount of borrowed funds, the buyer also needs an apartment appraisal for a mortgage. In this way he can justify the requested amount of funds. The larger the loan he receives from the bank, the less his own funds will have to be invested. After an independent examination, the borrower can see the real value of the property being purchased, and not the one that suits the seller.

Who makes the assessment

Housing assessment with a mortgage is carried out at the stage of document preparation. All the nuances are spelled out in the law and the federal assessment standard, according to which only entities with a license to do so can engage in activities. The borrower has the right to independently choose an organization or an individual, or he can use appraisers who have been accredited by the bank where he is going to take out a loan.

How much does it cost to appraise an apartment for a mortgage?

The exact cost of the service can be found out only after consultation with a specialist. Depending on the region, it can vary significantly. So, in Moscow, the price ranges on average from 5,000 to 10,000 rubles and depends on the housing. It is clear that when analyzing luxury housing, the cost will be higher than when experts prepare a report on the Khrushchev-era building outside the Moscow Ring Road. Very often companies organize promotions, and even today you can find offers starting from 2,500 rubles.

At whose expense is the examination carried out?

Carrying out an examination is a troublesome and labor-intensive task. The cost of appraising an apartment for a mortgage depends not only on the collateral property itself, but also on the required package of papers and the urgency of the work. All these costs fall on the shoulders of the potential buyer. The bank is not involved in this, because the report is one of the documents that the borrower needs to attach to the list of papers required to obtain a mortgage.

Where to order an apartment appraisal

You can order a document only from those representatives who have a license to carry out valuation activities - this is the law. It is up to the borrower to choose independently or resort to those recommended by the bank. If a credit institution insists on choosing an appraiser only from a list accredited by it, it is necessary to request an official clarification of such a requirement from the bank, since such behavior is not legal.

Independent firms

Today, finding a company that would make an objective assessment of an apartment for a mortgage is not difficult. When choosing a potential one, you need to compare not only the services offered and the speed of work, but also the cost. Here are just a few of them:

• LLC "Independent Assessment";
• LLC "Independent Expert Evaluation Bureau";
• Independent appraisal company "GLOBAL".

Accredited specialists of a credit institution

Mortgage appraisals can be carried out not only by independent firms, but also by companies accredited by the bank itself. Each banking institution posts information with contact details of each entity on its Internet portal. It is important to understand that lenders do not work with just one or two professional appraisers. You can always choose - in Sberbank alone there are about two and a half hundred certified appraisers.

Private individuals

The law does not prohibit contacting private individuals who have the right to conduct assessments. They must be registered as an individual entrepreneur and must have a civil liability insurance policy in the amount of at least 300 thousand rubles. This will help reimburse costs if an error is discovered due to the incompetence of the individual entrepreneur. When issuing a mortgage loan, it would be a good idea to agree with the bank on the candidacy of an independent expert.

How to choose the right appraiser

You can evaluate an apartment for a mortgage in any company, but this does not mean that each of them will do the job efficiently and at a high level. When contacting a specific appraiser, it is important that the prepared package of documents does not contain errors due to which you will have to seek the service of a new expert. When re-paying for an assessment, the first thing you should focus on is reviews from real people, people you know better, who had direct contact with a representative of the organization.

Companies that have been operating on the market for many years and employ only highly qualified specialists - this is what you need to pay attention to. You should not chase cheap offers, because the work of an appraiser cannot cost a penny. When choosing a company, it is better to give preference to one whose office is located in close proximity to the property - this will help reduce the cost.

If the bank insists on its own person to carry out appraisal operations when purchasing an apartment, the borrower can refuse or accept the offer. The main advantage of working with an accredited company is quick decision-making, since their reports are accepted with almost 100% approval. This approach may not be very beneficial to the borrower, since there is a risk of underestimating the real value of the purchased property. For comparison, you can additionally order an independent examination.

How is an apartment appraised with a mortgage?

First, you need to decide on the choice of organization or individual who will conduct the assessment procedure. To do this, you need to discuss with the representative all the conditions for the work and the cost of the service. If the selected candidate is not on the list of those accredited by the bank, it must be approved to avoid problems in the future. After this, you can fill out an application and conclude a contract for the work.

Application for concluding an appraisal agreement

Before an expert evaluates an apartment for a mortgage, you need to fill out an application. As a rule, this can be done on the company’s website, and you need to provide a minimum of data. These include the name of the customer, the location of the object to be assessed and some information about it. After reviewing the application, the specialist will contact the client to set a time for signing the contract.

Signing the contract

An agreement is concluded in the form of a company in two copies for each of the parties. If necessary, you can always make changes to the document if the customer wants to add some points. Information about the customer, information about the appraiser, his qualifications and the presence of civil liability must be indicated. In addition, information is provided about the mortgaged housing property and the purpose for which the assessment is being carried out. The rights and obligations of each party are indicated. The date and signatures are affixed and all this is sealed.

What documents are needed for real estate valuation

To conclude an agreement and evaluate an apartment for a mortgage, you need to take a large number of papers with you. The first thing you need is a passport. If a trusted representative acts on behalf of a citizen, a power of attorney for the right to carry out activities will be needed. In addition, you must attach the following documents:

• certificate of ownership of real estate.
• title documents (donation agreement, purchase and sale agreement, privatization agreement, etc.);
• technical plan;
• cadastral or technical passport;
• floor explication.

Methods for determining the cost of an apartment

An integrated approach to the work of appraisal organizations includes several mandatory procedures, which suggests that this work is not simple. This includes the collection of documents, the process of inspecting the object and its analysis with the preparation of detailed reports. Depending on the goal pursued, different methods are used. Profitability helps determine how much profit can be gained when renting out or resale a property. When using it, many assumptions are made, so it does not always accurately reflect the real state of affairs.

The cost method is based on the real condition of the appraised housing. The costs required to construct a similar facility are taken into account. To do this, you need an estimate, without which accurate information about the apartment is impossible. With the comparative method, a parallel is drawn between equal objects sold or offered for sale. The information is summarized and an assessment is made using various coefficients. The method gives the most accurate idea of ​​the real cost of a home.

Market price of the property

In simple terms, the real market value of housing is the amount for which the buyer is willing to purchase an apartment, and the seller agrees to sell it. Analysis of the market price of an apartment is possible only by studying existing offers on the market. Apartments with similar consumer qualities are taken into account. The more options are presented for comparative characteristics, the more accurate the final figure will be.

Liquid value

In addition to the market value of the apartment, the lender takes into account the liquidation value. This is the price for which real estate can be sold in the shortest possible time with a minimum of effort. To obtain a mortgage loan, it is extremely important to accurately determine the market price of similar apartments, since the liquid price differs from it to a lesser extent and is about 70–80%. The bank will issue a loan to the borrower based on the liquidation price.

What to do if there is a significant difference in the cost of an apartment

The estimated value is significantly lower than what is offered on the market. You can cover the difference with your own money or request a consumer loan, although it will be issued at a higher interest rate. You can provide additional collateral to the bank. This will help increase your mortgage settlement amount. You are allowed to contact an independent expert for an additional assessment, because any nuances that affect the cost of housing may not have been taken into account, for example, a new building from the developer, the presence of renovations in the premises, the location of a metro station nearby.

Real estate valuation report

As a result of the appraisal work, the main document is drawn up, which will guide the bank when determining the loan amount. This is a report that has legal force and meets the mandatory requirements of the customer. At its core, reporting is evidence, so to speak, justification for why a property has such a price. Only specialists who have permission from a self-regulatory organization and have insured their liability are allowed to draw up the document.

Registration requirements

Since the report has legal force, it must be prepared correctly. Many banks may put forward their own additional requirements for documentation, so you need to find out about this in advance, since the document may not be accepted for consideration. All appraisers accredited by a certain bank are aware of the conditions put forward, so there are no complaints about the reports they prepare.

In addition, any report compiled must comply with the requirements of the Association of Russian Banks (ARB) and the Association of Housing Mortgage Lending (AHML):

• have a printed form;
• data can be presented in both tabular and descriptive form;
• contain all the data necessary for calculating the loan;
• the number of pages should not exceed 30.

What information should be included in the report?

Since the assessment of an apartment for a mortgage from a bank is based on a report drawn up by an expert, the document must contain comprehensive data. Information about the customer and the contractor must be provided. Includes data about the object to be analyzed, tasks and methods for justifying the cost. An analysis of the location and development prospects is provided. Photos of the house, the entrance, the apartment itself or its share are given. The parameters of the apartment are described (floor, area, ceiling height, etc.)

All characteristics of the object are presented in comparison with similar dwellings, and the redevelopments made are taken into account. Calculation of the cost per square meter in the compared apartments is given with decreasing and increasing factors. The market and liquidation value of the apartment is determined. In addition to all this information, the report is completed with appendices, acts, copies of documents and other photographs of the object.

Time to prepare and submit the report

Depending on the complexity and qualifications of the expert, preparing a report may take varying amounts of time. The work may take two days, but it may be longer, but as a rule, on average, the preparation time does not exceed five working days. After the report is ready, the client receives a notification that the document can be picked up. If the report was prepared in a non-accredited company, it is necessary to ensure that there are copies of documents confirming the legality of the company’s work.

Validity period for apartment assessment

Due to the fact that real estate may change in price and its condition may deteriorate, the validity period of the report according to the law is 6 months. This was done so that the client could turn to other credit institutions if he is refused a loan. After six months, if it was not possible to obtain a loan, the apartment is re-evaluated for a mortgage.

Video

Most future borrowers are aware that an independent appraisal of apartments for a mortgage is necessary when granting a loan. The cost determination report is directly indicated in the list of documents issued by the bank. But not everyone knows why it is needed, who can carry it out and how, how much you will have to pay, and what will happen if you refuse the assessment. Those citizens for whom this topic is particularly relevant now will be given answers to the questions raised.

Why do you need an apartment appraisal for a mortgage?

A mortgage is not just a loan, but secured lending. The apartment serves as security for repayment of the loan. Until the mortgage loan is fully repaid, it will be pledged to the bank, so it is necessary.

Lawyers have long been arguing about the mandatory assessment of collateral by a specialist, and not just by the mortgagor and the mortgagee. That's a moot point.

But one thing is certain: the borrower’s refusal to carry out appraisal activities by an independent specialist automatically entails the bank’s refusal to issue a loan. The lender wants to know the market value of the collateral. And it’s interesting for the borrower himself. basis for the amount requested. Moreover, it is also needed in secondary housing.

Valuation of collateral solves three problems for the lender at once:

1. Determining the size of the loan issued. It cannot exceed 80%-85% (in different banks) of the cost of the apartment;
2. Correlating the cost of housing with the estimated value in order to exclude significant parties to the transaction;
3. Establishing the real value of the apartment at which it can be sold if the loan is not repaid.

Who does the property appraisal for mortgage lending?

The assessment is carried out by specialists who have received the right to engage in assessment activities. This right is granted to an individual who has undergone special training and passed a qualifying exam. Confirmation of the right is the presence of a specialist qualification certificate, the validity of which does not exceed 3 years from the date of issue.

The appraiser, in accordance with the law on valuation activities, is required to be a member of the SRO, which is confirmed by a certificate. The professional activities of a specialist must be insured. The amount of insurance in 2018 for an individual is at least 300 thousand rubles. If the appraisal activity is carried out by a legal entity, then the insured amount is from 5 million rubles.

Please note that an organization can carry out an assessment on its own behalf if it employs at least 2 certified appraisers. After all, only an individual can receive a qualification certificate in the Russian Federation.

Where is the best place to order an assessment?

Each locality has many specialists who can make assessments. But it would be more correct to order appraisal services from a qualified specialist, and not just someone with a certificate.

Therefore, when choosing, you can rely on the bank that provides the mortgage loan. A list of appraisers whose opinions the lender trusts is posted on the bank’s website. These appraisers are accredited and are well aware of all the requirements of a particular bank for appraising apartments and recording its results.

If the borrower decides to choose a specialist himself, then he should be guided by the period of his work in the market for the provision of appraisal services.

Type of value determined

To evaluate housing for the purpose of obtaining a mortgage loan, the appraiser determines two types of value.

Market price

This is a cost that reflects the most likely price of an apartment at which it can be sold at the current moment.

Liquidation value

This is the price at which the apartment can be sold in the shortest possible time with minimal costs. It is always less than the market one and is the basis for the bank to determine the maximum loan size.

How is an apartment appraised with a mortgage?

Assessment activities take place in a strictly defined sequence. Below are step-by-step instructions.

Negotiation

The first stage is a meeting between the customer and the contractor at a pre-agreed time. A professional appraiser, without further request, presents to the customer copies of documents confirming the right to engage in appraisal.

At this stage, negotiations take place covering all details of the assessment, including:

• purpose of the assessment;
• collateral information;
• agreeing on the inspection time;
• deadline for completing assessment activities;
• cost of services;
• terms and procedure of payment;
• type of presentation of results;
• list of documents required from the customer.

If the customer has the required documents with him, then the parties can immediately sign an agreement for the provision of services. If they are not available, then the agreement is signed and comes into force after they are provided.

The borrower's refusal to carry out the assessment automatically entails the bank's refusal to issue a loan.

The appraiser needs:

• passport data of the customer (for the contract and payments);
• extract from the Unified State Register of Real Estate;
• any available technical documents for the apartment (technical passport, technical plan, floor plan).

Conclusion of an agreement

When all documents are received, the appraiser prepares a contract for the provision of services. If there are no objections, the customer signs it. From this moment the term for the provision of services specified in the contract begins. The normal period is from 2 to 5-6 days.

Site visit

At the appointed time, a specialist arrives to inspect the apartment.

Its task is to visually assess and record all factors affecting its cost, including inspection:

• the district block in which the apartment is located for the presence of infrastructure facilities (schools, hospitals, shops, etc.), green areas, transport accessibility, industrial facilities;
• local area (general condition, parking spaces, playgrounds);
• general condition of the house, entrance, availability of an elevator;
• apartments: checking the compliance of the actual layout with the design one, general condition, modernity of communications, door and window openings, presence of a balcony, etc.

Visual observations are recorded using photographs and written notes.

Office work

One of the main stages of assessment activities. Conducted in the office. At this stage, the specialist performs:

• generalization and analysis of information obtained from customer documents and during inspection;
• collecting data from open sources about the state of the housing market in general and directly in the area where the apartment is located;
• choice of approach and method of assessment (for apartments, almost always a comparative approach, the method is comparison of sales);
• search for proposals for analogue objects;
• direct calculations and cost justification;
• selection of documents for the report.

After completing this process, the appraiser generates an assessment report.

Evaluation report

This is a document that reflects all the information about the assessment process and its results. The composition of the sections of the report is regulated by the Law on Valuation Activities in the Russian Federation.

The report contains:

1. Customer information;
2. Purpose of the assessment;
3. Detailed information about the apartment;
4. Information about the appraiser;
5. Data on the choice of approach and method of assessment;
6. Statistical information on the housing market, its analysis;
7. Cost calculations using the selected method;
8. Conclusions made about the cost of the apartment in the form of a conclusion;
9. Attachments to the report.

Attached to the report:

• title documents;
• technical document for the object;
• photographs of the apartment;
• documents of the appraiser giving the right to engage in appraisal.

Appraisal of an apartment for a mortgage is a mandatory requirement, without which the signing of an agreement is impossible. It is the expert’s conclusion that will be fundamental in determining the amount of the amount that the bank will issue to the borrower.

Why do you need a real estate appraisal for a mortgage?

A real estate appraisal is necessary to determine the amount that the bank will be willing to issue to the borrower as a mortgage loan. For the bank, a report on the assessment of the apartment for a mortgage is necessary to determine the amount of the amount that it can collect in the event of debt arising and the need to sell the mortgaged property. Since the price of secondary housing can fluctuate very much (the final cost is influenced by many factors: from the need to do major repairs to the location of the apartment), the appraiser’s conclusion will allow you to determine what amount is needed to purchase this property and what the loan size should be.

Based on the expert’s conclusion, the bank makes a decision on the size of the mortgage to be issued.

Sometimes potential borrowers have a question about why an apartment in a new building needs to be assessed for a mortgage, since the cost of the apartments is determined by the developer. The assessment of a new apartment is carried out after registration of ownership of the object in order to obtain a mortgage. The bank, as a rule, prescribes the need to provide an appraiser’s report at this stage as one of the borrower’s obligations in the loan agreement.

Where can I order an apartment appraisal for a mortgage?

The requirement to evaluate the apartment is provided for in paragraph 1 of Art. 9 of the Federal Law “On Mortgage (Pledge of Real Estate)”. This rule stipulates that the contract must specify the subject of the mortgage (that is, the property), its value, the term of the loan and the total amount. The contract may also stipulate the procedure for debt collection.

The borrower can choose an appraiser himself, but usually the bank has its own list of specialists it can recommend contacting. A banking organization does not have the right to insist on a specific appraiser, but contacting an expert approved by a financial organization will speed up the process of considering a mortgage application, since the bank will not have to check the qualifications of an unknown specialist.

The bank has no right to prohibit or indicate which specialist to contact. If the borrower categorically does not want to contact the company indicated by the bank, and the banking organization refuses to accept the conclusion of another expert, then the borrower must request a written refusal indicating justified reasons.

The assessment of real estate for mortgage lending has the right to be carried out by an accredited specialist who meets a number of requirements:

• is a representative of a registered organization of property valuers;
• have a civil liability policy in the amount of at least 300,000 rubles. This policy is a guarantee that in the event of an accidental or special error during the assessment of real estate, third parties will not suffer. In case of incorrect determination of the value of the object, the damage will be covered by this policy. The requirement for the appraiser to have a civil liability policy is regulated by Art. 24.7 of the Federal Law “On Valuation Activities in the Russian Federation”.

Only accredited specialists can carry out assessments.

What documents are needed to evaluate an apartment for a mortgage?

To evaluate real estate for a mortgage, you must provide the following documents:

• title documents. Most often, such a document is a purchase and sale agreement;
• technical passport from BTI.

All provided documents are certified by the customer with his signature.

How much does a property appraisal cost for a mortgage?

On average, the price for appraising an apartment for a mortgage ranges from 2000-3000 rubles. In Moscow and St. Petersburg, the price of an expert’s services is slightly higher and amounts to about 4,000-5,000 rubles. Compared to the cost of the apartment, these expenses are not too large.

The cost of the service depends not only on the skill level of the specialist, but also on some other factors:

• apartment location. It’s one thing if the apartment is located in the city, and quite another if the appraiser needs to go to some remote village;
• urgency. The faster the borrower needs to receive an expert’s conclusion, the more expensive the cost of the service will be.

How much does it cost to appraise an apartment for a mortgage at Sberbank? On average, the cost of the service is 3000-3500 rubles.

Speaking of who pays for the appraisal of the apartment with a mortgage, all expenses fall on the borrower.

How is an apartment assessed for a mortgage?

The procedure for assessing the market value of an apartment for a mortgage does not differ from the assessment of real estate for a regular purchase and sale transaction. The client must enter into an agreement with the expert. After this, a date is determined when a specialist must come and inspect the property for sale. It is mandatory that the appraiser personally takes similar photos of the apartment, which he subsequently attaches to the report.

There are several ways to independently evaluate real estate for a mortgage:

• market (comparative) – comparison of already completed transactions with similar real estate objects;
• profitable - assessment of the prospects of a given object in the future from the point of view of generating income;
• costly - estimating the costs that would be required to construct a similar facility.

In addition to the apartment itself, the appraiser studies the following factors that ultimately affect the final cost:

• the year the building was built, whether it was overhauled, what condition the communications are in;
• how far is the public transport stop;
• availability of social infrastructure;
• area security.

If the area is new, then the prospects for its development are assessed.

After studying and analyzing all factors, the expert prepares a final detailed report with a reasoned decision. Typically the report is about 25-30 pages long. It indicates two prices that may differ: market and liquid.

Many factors influence the assessed value.

What is market and liquid value?

Market value is the price at which a home would normally be sold. Liquid value is the price at which the seller can urgently sell the property in the event of a forced sale. Typically, the liquid value is about 80% of the market price.

Banks pay attention to liquid value, that is, the price for which they can sell the pledged property.

The lower the liquid value, the smaller the size of the mortgage loan the bank will issue.

How long does an apartment appraisal last for a mortgage?

According to the Federal Law “On Valuation Activities in the Russian Federation,” the report is valid for six months from the date it is compiled.

However, the date of the assessment and the date of the report are different. As a rule, this is several days, but sometimes the difference between the date of the actual inspection of the object and the date of signing the expert conclusion may differ by one to two weeks.

The expert's conclusion is valid for six months.

Valuation of an apartment with illegal redevelopment for a mortgage

At the moment, more than half of the apartments on the real estate market have undergone some changes. By law, even changing the shape of doorways or eliminating storage space in a hallway or bedroom is considered redevelopment.

From the bank’s point of view, all unauthorized changes are shortcomings that negatively affect the value of the apartment. Accordingly, the liquid value of the apartment decreases, and the borrower can count on a smaller mortgage loan amount.

Each case of redevelopment is considered separately. It is difficult or practically impossible to legalize the following types of redevelopment:

• dismantling all partitions inside the apartment;
• demolition or partial dismantling of load-bearing walls;
• installation of a “warm floor” system powered by a centralized central heating system;
• placing a kitchen, bath or toilet above neighbors’ living rooms;
• dismantling the wall between the room and the balcony with the installation of a heating radiator powered by a centralized system;
• dismantling ventilation systems or closing fire hatches if available.

Sometimes customers ask not to indicate the fact of redevelopment in the expert report. Concealing such information may result in the expert being deprived of accreditation with the bank, and for the borrower – the bank’s requirement to repay the loan early. In the worst case, the bank may sue for compensation for all the damage caused to it. Considering the seriousness of the consequences, conscientious appraisers never commit such a serious violation.

Unauthorized redevelopment can be a serious obstacle when obtaining a mortgage.

Results

So, an apartment appraisal is necessary to get a mortgage loan. Choosing a specialist, concluding an agreement with him and paying for his services lies entirely with the borrower, but the bank may recommend contacting one or another company.

Instructions

To evaluate an apartment, you need to choose an appraisal company that deals with this issue. Only accredited organizations can do this, otherwise the document will not be official and has no legal force.

The main documents for appraising an apartment are the title documents. These include the owner’s passport; in the case of several owners, the passports of all are required. As well as documents confirming ownership of this object - if there are no documents on ownership yet - an apartment in a newly built house, then you need an agreement on the basis of which the transaction was concluded, as well as a cadastral passport.

In case of encumbrance of property: pledge, mortgage, etc. Relevant documents will be required. Some appraisal companies require proof of the absence of encumbrance - either the customer or the organization itself makes requests to the registration chamber.

In the case of housing planning, it is also necessary to provide the appropriate permits from the BTI

It is also worth providing technical documentation for the apartment, because... When assessing, the location of the object being assessed plays a role. This includes the explication of the premises to the floor plan and the floor plan of the house itself.

When conducting an assessment, it is necessary for an appraiser to visit the property so that he can inspect the apartment and take photographs.

After inspecting the property and submitting all documents, the assessment is made within a few days. After this, a document is issued, which must be bound with seals and signatures. It indicates the market value of the property, which is used as a guide when carrying out various transactions with the apartment, as well as sufficient detail of the property itself, including the condition of the house, its location and other factors that were taken into account during the assessment.

note

If an appraisal is needed to pledge a mortgaged apartment to a bank, you must contact only those companies that have been accredited by this bank. Otherwise, the assessment may be considered invalid.

Helpful advice

Before going to the property to evaluate the apartment, it is worth making all copies of the relevant documents, because The appraisal company will need exactly these, and the originals are needed for verification.

A mandatory procedure for calculating and compensating for damages from an accident is an examination of the car involved in the accident. The assessment activities of the damaged vehicle include several stages and for a positive result (reimbursement of the entire amount for repairs) they require strict adherence to the regulations.

Instructions

The main task of the appraiser is to conduct an automobile examination that establishes the degree of damage to the car, as well as the amount of costs necessary to fully restore the vehicle after an accident.

At the first stage, the car owner should decide on an appraisal organization that will undertake all expert work (regulated by Article 15.1 of the Law “On Appraisal Activities”). Adequacy, competence, experience and knowledge of the basic norms of the law by the appraiser are factors that can affect the final result of an independent examination of a car.

Enter into a written agreement with the company detailing all the conditions of the assessment procedure. You can call a specialist either to your garage / observation deck, or provide the car directly to the expert organization.

The vehicle inspection is carried out by oral or written agreement with the appraiser of the time and place of the procedure. Call all interested participants or their proxies in advance at the appointed examination time. To be on the safe side on the day of the independent vehicle inspection, invite your relatives and friends who are ready to subsequently confirm the fact of the vehicle inspection.

To organize the work of assessing damage to the car, you will be required to submit documents: passport of the vehicle owner; car registration certificate; a certificate of an accident provided by a traffic police officer. It is recommended to wash the car before the inspection so that nothing interferes with the assessment of damage.

The procedure is as follows: a specialist records defects, the general condition of the car before the accident, and takes photographs of new damage caused by the accident. Make sure that the camera lens captures the license plates, identification number, every detail. In addition to photographs, the appraiser must describe in writing the nature of the damage. The conclusions of the automotive examination depend on the literacy and completeness of drawing up the inspection report. To avoid undetected hidden damage, request that indications of its possibility be included in the document. Sign the deed after you read it carefully. Ask to rewrite inaccurate/incomplete statements. In addition to the painting, the car owner must put a mark: “I have read the agreement.”

At the final stage, the appraiser draws up a conclusion with a list of required repairs and their cost, taking into account standard labor costs. The conclusion is accompanied by a photo table (photos in the form of a table). A report on the assessment of the market value of the restoration of a car damaged in an accident must be carried out in accordance with the Law “On Valuation Activities” and the current standards - FSO-1, FSO-2 and FSO-3.